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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › Corporate failure models
Hi,
In the exam, are you given the formula and details with respect to Altman’s Z score? Also, are you given variables for defects, mistakes and symptoms for Argenti’s A-score please?
Thanks
You are certainly given the formula for Altman’s Z score (or at least that happened in the past).
I’m sure you would not be expected to know all the scores in Argenti, but you should know some of the high scoring items for each section so that you could discuss a case.
Ok great thanks for your help 🙂
Another quick question with respect to this please…
In the formula of Altman’s Z Score, are we also told what each component of the formula stands for (so X1 = working capital / total assets, X2 = retained earnings / total assets, and so on..)?
Yes, you would be told this I’m sure.
Ok thank you 🙂
Dear Tutor,
In the detailed syllabus, specific mention is made of the Z-score and the A-score. However, several approaches are detailed in the Corporate Failure article. Can I take it that only the Z-score and the A-score are examinable?
They are the only ones that can be required because they are the only ones specified in the syllabus.
